Chart of the day: what is NFLX price action telling us?


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.

This Post Has 10 Comments

  1. Al3cs

    Looks like a good opportunity for a pullback trade as you defined in the course. We had the signal, waiting for the entry.

    1. Danny Boy

      I’d like to suggest maybe an Anti? Due to the long buying power for so long and a sudden change in market price action. The rally at the end to pick up prices again may be a great time to place a short trade.

        1. Jochen Irdoj75

          If you have work with a proven profitable system that requires the hook to happen as core part of your entries, then disregard my opinion please.

          The MACD is simply a mathematical/visual help derived from the original price action. You may want to consider what needs to happen to see the hook.

          1) For today, 23-Jun close needs to be around 149 or below, which would be a (2) or worse sigma spike. In other words, to wait for the hook today would leave you out of the potential initial move limiting your profit potential. (there is also a good argument that you’d want to wait anyway for a drop below 149 which is roughly the horizontal support, I personally would look at the 2 or 3 day low here)
          2) If 1) does not happen today there is a high likelyhood that the hook happens tomorrow when e.g. prices even rise to 156.

          What I try to say is that the hook itself for me is helpful in hindsight analysis, but in this specific realtime case I’d not pay too much attention to it. You may be either late or sucked in w/o confirming price action.

          1. Al3cs

            I perfectly agree with you. I’m a Price Action trader who’s trying to add new tools to the bag. What I see now is a wedge: if it breaks up I will check for the anti, if it breaks down I will wait for measured move down. I’m surely checking H1 and lower timeframes for tighter stop.

  2. Slammer

    The snap back might be on now?

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